The Role of Standards and Professional Bodies: Drivers of Development

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“Professional Body” An entity, association which exists for the benefits of its members An entity, association which exists for the benefits of its members Fundamental elements Fundamental elements Standards and Code of Ethics Standards and Code of Ethics Education and Training Education and Training

Case Study: Evolvement of a professional body 1964 Establishment of IIA’s South African Chapter. Started as informal meetings of internal auditors 40 years ago 1964 Establishment of IIA’s South African Chapter. Started as informal meetings of internal auditors 40 years ago Initial driver was need for contact, sharing of experiences Initial driver was need for contact, sharing of experiences Area meetings evolved, news spread Area meetings evolved, news spread 1983 South Africa becomes a National Institute South Africa becomes a National Institute. Secretarial duties became onerous; administration delegated to part time contractors Secretarial duties became onerous; administration delegated to part time contractors Voluntary Board evolved Voluntary Board evolved

Evolvement of IIA SA 1985 – registered as a non-profit organisation with Company Directors - gives legitimacy to voluntary structure 1985 – registered as a non-profit organisation with Company Directors - gives legitimacy to voluntary structure 1995 – voluntary structure no longer tenable; first full-time Secretariat member appointed 1995 – voluntary structure no longer tenable; first full-time Secretariat member appointed Drivers – increased communication needs, volunteers provide inconsistent support, insufficient continuity Release of first King Report on corporate governance Drivers – increased communication needs, volunteers provide inconsistent support, insufficient continuity Release of first King Report on corporate governance

Evolvement of IIA SA 1998 – 3 full time administrators, 8 regional volunteer committees 1998 – 3 full time administrators, 8 regional volunteer committees 1999 Part time CEO, also works for IIA Inc as Regional Director, Africa 1999 Part time CEO, also works for IIA Inc as Regional Director, Africa 2001 full time CEO, 5 staff; membership full time CEO, 5 staff; membership 1400 Today – CEO, 11 staff, membership >3000 Today – CEO, 11 staff, membership >3000 Drivers – legislation and King support internal audit functions, growth of corporate governance and risk management requirements, corruption, need for skills development, public sector expands IA functions Drivers – legislation and King support internal audit functions, growth of corporate governance and risk management requirements, corruption, need for skills development, public sector expands IA functions

Why the need for a professional body? It’s a professional home It’s a professional home Central contact point; repository of information Central contact point; repository of information Administrative support of the key fundamentals –membership, education & training, technical support, dissemination of Standards and Code of Ethics Administrative support of the key fundamentals –membership, education & training, technical support, dissemination of Standards and Code of Ethics

The IIA SA Key support functions Reception and switchboard Reception and switchboard Membership Membership Finance and administration Finance and administration Education & training* Education & training* Career path – combination of experience (workplace) and learning (academic) = COMPETENCE Career path – combination of experience (workplace) and learning (academic) = COMPETENCE Certifications Certifications Technical support* Technical support* * initially done by voluntary committees

Key support functions Services Manager – to answer queries, organise events, office management Services Manager – to answer queries, organise events, office management IT support IT support Marketing and communication Marketing and communication CEO CEO Strategy, Board support Strategy, Board support 3 rd party liaison including Inc, organisations, other bodies 3 rd party liaison including Inc, organisations, other bodies Staff management Staff management Policy Policy Image, public relations etc Image, public relations etc

IIA Education and Training Academic Academic Universities and Technikons Universities and Technikons EIAP, aligned to CFIA EIAP, aligned to CFIA Student support Student support Training Training Annual seminar/courses program Annual seminar/courses program Learnerships Learnerships Conferences Conferences Annual Southern African – August Annual Southern African – August Regional Regional Risk, Fraud Risk, Fraud International 2009 International 2009 Networking events Networking events

IIA Training - learnerships

Learnerships Training contract between employer, employee, Dept Labour Training contract between employer, employee, Dept Labour 21 days focused academic training 21 days focused academic training Implementation of learning in workplace, logbook, assessed by IIA SA Implementation of learning in workplace, logbook, assessed by IIA SA Designation at end – Internal Audit Technician (IAT) Designation at end – Internal Audit Technician (IAT) General Internal Auditor (GIA) in development General Internal Auditor (GIA) in development

Future expansion Education and training Education and training Full time Manager and support staff Full time Manager and support staff Quality assessments Quality assessments State-of-the-art courses State-of-the-art courses Extended visiting program to CAEs to increase understanding of IA Extended visiting program to CAEs to increase understanding of IA Company secretary Company secretary Secretarial support staff Secretarial support staff Enhanced marketing and promotions Enhanced marketing and promotions Regional infrastructure Regional infrastructure Exemplary corporate governance Exemplary corporate governance

Conclusion Secretariat provides Secretariat provides Professional home Professional home Mechanism for stability, spreading professionalism, disseminating the Standards and Code of Ethics Mechanism for stability, spreading professionalism, disseminating the Standards and Code of Ethics Voice of the individual on a united front, locally and globally Voice of the individual on a united front, locally and globally Together we Together we Progress through sharing …..